In this presentation, we will help you understand about franchising, history, types, various advantages and disadvantages of franchising.
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4. History of Franchising
• The earliest signs of franchising in the united states dates
back to 1850’sjust after Isaac Singer invested Sewing
machine.
• The problem was lack of capital for manufacturing the
machine.
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5. History of Franchising
• Singers idea got noticed and over the next several
decades many other companies began to copy and
enhance the business model franchising.
• Later Companies such as McDonald’s and Burger king
took franchising to a whole new level.
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6. History of Franchising
• Franchisor is the entity or person owning to the rights or
license of the business.
• Authorization granted by a manufacture to a distributor
or dealer to sell his products.
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9. Definition of Franchisor
Franchisor Franchisee
Site Selection Oversees, may choose Chooses with approval
Design Provides Prototype Implements design
Design
Menu Set by Franchisor Changed only by approval
prices Recommendations Decides actual prices
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10. Franchising in India
• India with its huge market and growing demand in all
sectors of the economy is extremely attractive
proposition for entry of foreign brands through
franchising route.
• In the 1990 the market opened foreign franchise.
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13. Franchising in India
Early Entry of Foreign players.
• International soft drinks and hotel Franchisor arrived in
India.
• Marks & Sponsors
• Pepe Jeans & Adams
• Baskin Robbins
• Pizza Hut
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14. Franchising in India
Indian companies adapting the Franchise Model.
• Franchising become very popular method of doing
business in India
• This has case in IT education e.g.
• SGL
• NIIT
• Aptech
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15. Franchising in India
• It took some time for international franchise to become
acceptable because of certain attitudes of Indian Business.
• If the brand name is very well known worldwide and the
product is marketable in India.
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21. Dealership or Distributorship ,Licenses,
Agencies
• Dealership and distribution ship Format Franchise is the
also most popular form of Franchising.
• Allow to sell Franchiser product under their own
trademark.
• Agencies Format Franchise Own the rights to sell
products on behalf of a supplier.
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25. Multiple Franchisee
Some Franchisees operates not just one unit but several.
•
Franchisor
Unit Franchise
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26. Developers
Large corporations sometimes prefer to exploit their
territory by opening outlets themselves.
•
Franchisor
Developers
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27. Advantage of Franchise
• Increase number of outlet with minimum capital
• Name recognition
• Running small business under Franchise name is very
beneficial
•
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28. Advantage of Franchise
• Big Business help in corporate marketing.
• Proper & effective marketing tactic.
• Training & Management facilities
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31. Summary
• Franchisee is the party in franchising agreement that is
purchasing the rights to use business trademarks,
associated marks & other proprietary knowledge in order
to open branch.
• Franchisor is an individual or a company owning rights or
license of business.
• Franchisor is a person who grants the license or
permission to various franchisees
•
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